RESTRICTED
165316
MDHIAN 2492
APPELLATIONS.
C) THE NEW REGIME FOR TREATING SOFTWOOD IMPORTS INTO THE EC,
ESPECIALLY BRITAIN, WILL GIVE CANADIAN FIRMS TIME TO ADJUST.
12. DESPITE THE ECONOMIC SLOWDOWN, EC-CANADA TRADE AND INVESTMENT IS MOVING IN THE RIGHT DIRECTION FOR US. MOST CANADIAN INVESTORS IN EUROPE CHOOSE THE UK AS THEIR BASE. BUT THE COUNTER-ATTRACTION OF THE US MARKET IS STRONG, REINFORCED BY THE CONCLUSION OF NAFTA (ALSO DUE FOR SIGNATURE ON 17 DECEMBER). MORE EC-CANADA TRADE AND INVESTMENT FLOWS WOULD INCREASE THE RANGE OF COMMON ECONOMIC INTEREST AND THUS THE INCENTIVE FOR RESOLVING SPECIFIC TRADE DISPUTES, WHICH ARE BOUND TO RECUR.
CONCLUSION
13.
THE CANADIANS HAVE LOOKED TO US FOR SUPPORT IN DEVELOPING A BROADER RELATION WITH EUROPE. THEY ARE PLEASED WITH THE PROGRESS MADE, ESPECIALLY DURING OUR PRESIDENCY, AND GRATEFUL FOR OUR HELP.
THEY NO LONGER FEEL THEY HAVE TO MAKE A FUSS TO GAIN THE COMMUNITY'S ATTENTION. IT WILL BE IMPORTANT FOR THEM TO KEEP UP THE MOMENTUM WITH ENSUING PRESIDENCIES AND THE NEW COMMISSION.
BAYNE
YYYY
ΜΑΙΝ
271
FRAME EXTERNAL
ADDITIONAL
1
FRAME
NNNN
DISTRIBUTION
272
.ECD (E)
3
PAGE RESTRICTED